Why the Dollar Will Always Be the Reserve Currency for the World

On Friday morning the U.S. dollar came close to its lowest point of the year against the euro, according to The Wall Street Journal, on expectations that the Fed will have to continue its easy money policies for longer than first forecast thanks to the government shutdown.

More broadly, the shutdown and fiscal brinksmanship over the debt ceiling has again renewed the debate over the dollar and its status at the center of the financial system as the global reserve currency.

But in the accompanying video interview with Martin Wolf, chief economics commentator for the Financial Times, he tells The Daily Ticker the dollar is under no threat as the world’s reserve currency.

“I’ve never been very worried about this,” he asserts. “The reason for that is there really is no alternative. The Chinese are not going to offer – and they cannot, given where they are in development, I think, for a decade or more – a genuine competitor for the dollar.”